Institution: The Central Bank may cut interest rates next month due to mild inflation.

Jin10 data reported on August 19 that Canada’s Desjardins Group maintains its forecast for a rate cut by the Central Bank of Canada next month, citing July’s inflation data as “relatively mild.” Overall inflation slowed to 1.7% in July, down from 1.9% the previous month. The inflation rate excluding indirect taxes also decreased from 2.5% to 2.2%. With the Canadian government deciding in March to eliminate the consumer carbon tax, the Central Bank of Canada is closely monitoring this tax-excluded indicator. However, core inflation, which excludes volatile items such as food and energy, remains elevated, and the Central Bank’s preferred core inflation measure is still above 3%. The bank’s economist Royce Mendes stated that the data indicates that price increases related to tariffs may appear in March and April, or earlier than the Central Bank’s expectations. “Recent price data shows that price growth is normalizing.”